Notes to SEFA
The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Self Regional Healthcare and Affiliates (the “Hospital”) under the programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Hospital, it is not intended to and does not present the financial position, changes in net position or cash flows of the Hospital.
Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. As outlined in the May 2023 OMB Compliance Supplement, the amounts reported in the accompanying Schedule related to the Provider Relief Fund (“PRF”), Assistance Listing No. 93.498, are reported based upon the PRF reporting portal submission guidelines established by the Health Resource and Service Administration (“HRSA”). Four separate reporting periods were established by HRSA based on the dates of receipt of PRF payments. Each reporting period has a specific period of availability which begins on January 1, 2020 and extends through specified deadlines, as indicated below: The accompanying Schedule includes those qualifying lost revenues and expenses that were reported in the HRSA PRF portal for Period 1. The total amount of $10,759,527 in PRF payments was recognized by the Hospital as nonoperating revenues totaling $7,259,528 during the fiscal year ended September 30, 2023 with the remaining $3,499,999 in estimated third-party payor settlements as of September 30, 2023.
The Hospital has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Hospital’s federal programs are subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures and affect the Hospital’s continued participation in specific programs. The amount if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the Hospital expects such amounts, if any, to be immaterial.